InvestorQ : How was the response to the Rakesh Jhunjhunwala backed Metro Brands which closed for subscription on 14-December?
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How was the response to the Rakesh Jhunjhunwala backed Metro Brands which closed for subscription on 14-December?

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Rashi Mehra answered.
5 months ago
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After the rather poor performance of another Jhunjhunwala backed company, Star Health, investors were wary about the IPO of Metro Brands. However, after very tepid response on the first two days of the IPO, Metro Brands managed to sail through on the last day with support from the QIB segment. As per the combined bid details put out by BSE, Metro Brands Ltd IPO was subscribed 3.64X overall at the close of subscription in 14-Dec.

If I were to talk about specifics, then out of the 191.45 lakh shares on offer, Metro Brands Ltd saw bids for 696.12 lakh shares, which translates into 3.64 times subscription. Let me first focus on the QIB portion. The QIB portion had a quota of 54.70 lakh shares after it had placed 82,05,030 shares to anchor investors at the upper price band of Rs.500. Out of the balance 54.7 lakh shares, it got bids for 464.45 lakh shares implying 8.49 times subscription.

We now turn to the HNI/NII portion of the issue. Against the HNI quota of 41.03 lakh shares, it got bids for 123.85 lakh shares, an effective oversubscription of 3.02 times. The retail portion had a quota of 95.73 lakh shares on offer, of which valid bids were received for 107.83 lakh shares in total, translating into retail subscription at 1.13 times. Retail was the most tepid but fortunately the issue managed to sail through due to its small size.

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